General Liability Insurance Protects Small Business Owners

Owning a small business comes with many tasks, goals, responsibilities, and obligations. One of the primary obligations of being a business owner is being legally responsible. General liability insurance can not only help you to be legally responsible, this type of insurance can help to protect the investment you have in your business, therefore, helping to ensure its secure future.

Liability insurance in business terms helps to protect the insured business against legal claims and actions. These claims can be far and wide and can cover a multitude of things can that arise out of nowhere. If a restaurant owner has a customer sue the restaurant because someone became sick after eating at the restaurant, general liability insurance will cover legal fees and will also pay up to a certain amount in a settlement if the restaurant is found at fault.

Neglect is a common reason that many small businesses are sued by the public or by employees. Customers can visit a business during the winter and if the sidewalk is icy, it is considered neglectful that the business did not salt the walkway to make it a safe path. If a customer falls on the ice on the business sidewalk, general liability insurance will be a protective coverage that can help the business to survive during a lengthy court battle or when it has to pay a settlement to the injured party.

A small business that manufacturers a product can be sued for misrepresentation if a customer does not believe that the product does what the company says it will do. This is another common lawsuit that can tie a business up in court for many lengthy months or even longer. Legal defense fees can drag out, and during these times, it is imperative to have general liability insurance. Some states and regions make it a mandatory law for a business to carry at least some form of liability insurance. This is to protect the public and any consumers from a business that is not responsible or one that makes an error in judgment, marketing, or manufacturing.

One of the important things to remember about general liability insurance is that the insured person or business rarely receives a payment from the insurance company. The insurance is not in place to be profitable to the company, but rather to protect it. General liability insurance pays the neglected or injured party or the party that was wronged by the small business that is insured. This keeps the company from having to declare bankruptcy if it is unable to come up with the entire amount on its own.

Getting general liability insurance may or may not be a law where you live, but if it is not mandatory, it is wise to have in order to help ensure the security and future of your small business. This type of insurance can be a major deciding factor in whether or not a business will be able to withstand expected legal claims and accusations of wrongdoing.

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